In our “Tales from the Database” series, based on six years' worth of Print Business Landscape surveys, we look at historical data to see if we can identify any specific hardware, software or business trends. In this edition, we round up recurring questions about the challenges and investments associated with the technology landscape, and the extent to which print businesses are considering expanding into new product areas.
Drawing on six years' worth of Print Business Outlook research, our “Tales from the Database” series looks at historical data to see if we can spot any specific hardware, software or business trends. Since this issue is Technology Outlook, we've rounded up Technology Outlook-related (or at least relevant) challenges and investments, as well as a recurring question about the extent to which printing businesses are considering expanding into new product areas.
These surveys form the basis of our annual Printing Outlook reports, and in every survey we ask a broad cross-section of the printing industry about their business conditions, business challenges, new opportunities and investment plans. In our Business Outlook reports, we (naturally) focus on the most recent survey data, but occasionally look back at a survey or two to see how these topics have changed in the short term. By digging deep into our survey database, we can gain a deeper understanding of how these trends have shifted since the mid-2010s.
Keeping up with technology
In every survey, and even going all the way back to the old trend watches, one challenge that always pops up is “keeping up with technology.” If you look at how this challenge has been perceived over the past seven years, you'll see that it's not a big one (it was the 12th challenge in 2023; historically it's been a top 20 challenge, but not a top one). It spiked in 2019, likely because the survey was taking place around PRINTING United, and preparations for the trade show sparked interest in updating or upgrading parts of the factory. The last year before the pandemic also boasted the best business climate in recent years, so there were all the more reasons for shops to consider new technology. This challenge peaked in the past two surveys, but many of them probably aren't necessarily hardware-related. 2022 was the year that DALL-E and ChatGPT came along and AI captured everyone's attention. And if there's one technology change that could be considered a challenge, it would be AI. No one is entirely sure yet where it's going to end up. There are other aspects of print business software that can be a challenge. Well, just using print business software can be a challenge.
WhatTheyThink Printing Business Outlook Survey, 2016-2023
Planned Investment
The top planned investments in our most recent survey (Autumn 2023) show strong interest in post-press equipment – binding and finishing (digital and analogue equipment) and mailing – and software.
WhatTheyThink Printing Business Outlook Survey, 2023
I took the top six and looked back to 2019 to see the rise and fall of the product category. (I wish I could have looked further, but that would require me to print the charts on a wide-format printer.) Both digital and analog finishing equipment is a hot area, but offset/analog finishing has boomed in 2022. As Patrick Henry points out later in the issue, offset printing is alive and well, and modern presses have made offset increasingly competitive with digital and even production inkjet. Workflow automation software saw its lowest drop in 2022, only to peak a year later. We added “mailing software/equipment” in 2022, having noticed it had been a big write-in answer in the past few surveys, but is becoming more and more popular. “Additional space/new location” has skyrocketed in 2022. At that point, you could determine whether the pandemic would require a larger location to expand capacity/capabilities, or a smaller location that only requires a workspace, as working from home has eliminated the need for what Jen Matt called “carpeted areas of the business.”
WhatTheyThink Printing Business Outlook Survey, 2019-2023
And yes, we also tracked “I have no plans to invest” responses over the same period.
WhatTheyThink Printing Business Outlook Survey, 2019-2023
There was a slight increase in “no investment plans” responses in 2023, but the fundamental reason for this is that 2023 was a terrible year for capital investments, as high interest rates made financing costs prohibitive, or at least worth postponing until interest rates came down (as evidenced by “equipment financing costs” being the highest business challenge question ever). Naturally, this doesn't apply to things like software, but unless it's urgent, any large equipment purchases will likely be postponed until interest rates come down.
New Features
Every few surveys, we try to find out to what extent print service providers are expanding into new product and service areas, whether they have already added those new products and services, and if not, whether they have the time frame to do so, or if they are even on the provider's radar.
So where are printers seeing growth areas? Production inkjet and folding carton printing (the two are not mutually exclusive) appear to be areas where printers will expand. Display graphics was a popular application area 10 years ago, but everyone who could get into display graphics has already done so. Textile and other specialty printing (especially decorative) has been touted as a popular growth area, but at least for now, it does not show up in our survey data.
I'm looking forward to it
Dr. Joe Webb used to say that printers ignore new technology until they lose business to it, but I don't think that's the case anymore. Printers across the board have come to realize that diversification is a major strategic plan in the industry today.
But technology doesn't just mean adding new printing capabilities; it also means modernizing your entire business. And often, that means software. That means keeping up with technology, or catching up with it when you need to.